IBM sues GlobalFoundries for $1.5B over alleged breach of contract
ESSEX JUNCTION, Vt. (AP) - IBM claims in a lawsuit that GlobalFoundries has failed to produce high-performance microchips it promised in a sale.
IBM is suing the company for $1.5 billion for alleged misuse of the funds that IBM paid GlobalFoundries in their joint deal.
The Burlington Free Press reports that IBM sold the company its Essex Junction microchip development plant in Vermont to develop the microchips.
IBM said in a statement that GlobalFoundries has not complied with the terms of their deal and that the company has failed to act as a reliable partner and supplier.
GlobalFoundries spokesperson Laurie Kelly said that the allegations IBM brings against the company are meritless and GlobalFoundries is confident the court will agree.
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